Why You Should Use Foreign Trade Zones for Your Business

What are Foreign Trade Zones?

A Foreign Trade Zone (FTZ) is a designated area outside of customs where you can import, export, store, and even manufacture merchandise before taking it through customs. Ultimately, an FTZ allows you to defer and, in some cases, eliminate import taxes. The whole process of importing and exporting is sped up significantly, with fewer fees and a more streamlined system.

5 Advantages of Foreign Trade Zones

1.       Exemptions from inventory tax—you may not have to pay state and local property taxes on your inventory if you operate through a Foreign Trade Zone.

2.       Tax Exemption on re-exports—you can bring in merchandise to an FTZ and re-export it without paying duties (import taxes).

3.       Don’t pay duties on waste, scrap and yield losses—If you use an FTZ to manufacture your products, you don’t have to pay duties until you are ready to go through customs. That way duties won’t apply to things like waste and scrap.

4.       Weekly entry savings—FTZ’s allow you to pay entry fees in one lump payment per week. If you are only going through customs, you have to pay for every single entry, big or small.

5.       Tax Deferrals—Goods are not actually imported until they leave the FTZ, and so you don’t have to pay customs taxes until you’re ready.

Foreign Trade Zones Improve Your Logistics

When it comes down to it, using an FTZ is all about logistics—you can move your merchandise faster and with more efficiency.

The process can be complicated, and The Apparel Logistics Group has the expertise required to take full advantage of FTZs. For more information on how we can improve your business’s competitive edge, click here.

Posted: 6/5/2014 1:32:22 PM by Global Administrator | with 0 comments
Filed under: FTZ, import, Logistics, taxes, Trade, Zone, Foreign

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